Federal Signal Corporation · NYSE:FSS
Federal Signal — Q2 2025 Earnings Presentation
20 slides from Federal Signal's earnings presentation, Jul 30, 2025
Slide 1: Federal Signal Q2 2025 Earnings Call
Federal Signal Q2 2025 Earnings Call July 30, 2025 Jennifer Sherman, President & Chief Executive Officer Ian Hudson, SVP, Chief Financial Officer Felix Boeschen, VP, Corporate Strategy & Investor Relations
Slide 2: Safe Harbor
Safe Harbor This presentation contains unaudited financial information and various forward-looking statements as of the date hereof and we undertake no obligation to update these forward- looking statements regardless of new developments or otherwise. Statements in this presentation that are not his
Slide 3: Q2 Highlights
Q2 Highlights ** • Net sales of $565 M, up $74 M, or 15% • Organic growth of $42 M, or 9% • Operating income of $97.7 M, up $16.6 M, or 20% • Adjusted EBITDA* of $118.2 M, up $20.5 M, or 21% • Adjusted EBITDA margin* of 20.9%, vs. 19.9% • GAAP diluted EPS of $1.16, up $0.17, or 17% • Adjusted EPS* o
Slide 4: Group and Corporate Results
Group and Corporate Results $ millions, except % Q2 2025 Q2 2024 % Change ESG Orders 441.1 396.2 11% Net sales 480.5 408.8 18% Operating income 91.9 72.9 26% Operating margin 19.1% 17.8% Adjusted EBITDA * 110.8 88.2 26% Adjusted EBITDA margin * 23.1% 21.6% SSG Orders 98.6 76.8 28% Net sales 84.1 81.
Slide 5: Consolidated Statement of Operations
Consolidated Statement of Operations $ millions, except % and per share Q2 2025 Q2 2024 $ Change % Change Net sales $ 564.6 $ 490.4 $ 74.2 15% Cost of sales 395.0 346.4 48.6 14% Gross profit 169.6 144.0 25.6 18% SEG&A expenses 66.9 58.3 8.6 15% Amortization expense 4.5 3.8 0.7 18% Acquisition and in
Slide 6: Adjusted Earnings per Share
Adjusted Earnings per Share * ($ in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income, as reported $ 71.4 $ 60.8 $ 117.7 $ 112.4 Add: Income tax expense 22.0 16.7 37.7 16.0 Income before income taxes 93.4 77.5 155.4 128.4 Add: Acquisition and integration-
Slide 7: Financial Strength and Flexibility
Financial Strength and Flexibility * • Cash and cash equivalents of $64.7 M • Net debt of ~$204 M ** • In October 2022, executed a five-year, $800 M revolving credit facility, with Strong capital opportunity to increase further by the greater of (i) $400 M or (ii) 100% of TTM structure consolidated
Slide 8: CEO Remarks – Q2 Performance
CEO Remarks – Q2 Performance ** • Outstanding execution by both groups contributed to new quarterly records in net sales, operating income, adjusted EBITDA*, adjusted EBITDA margin* and adjusted EPS* • Environmental Solutions Group highlights: YoY net sales growth of 18%; 26% increase in adjusted
Slide 9: CEO Remarks – Market Conditions
CEO Remarks – Market Conditions * • Demand for our products remains strong, as evidenced by record Q2 orders of $540 M, up 14% YoY • Record quarterly SSG order intake of $99 M in Q2 (+28% YoY) • Q2 backlog at ~$1.08 B, up <1% YoY, provides visibility to rest of 2025 and well into 2026 for certain ke
Slide 10: CEO Remarks – Update on Strategic Growth Initiatives
CEO Remarks – Update on Strategic Growth Initiatives Through-Cycle Top-Line Growth Targets • Through cycles, we target annual low double-digit top-line growth, split roughly evenly between organic and inorganic growth Look to drive organic growth in excess of end-market growth rates as we harness
Slide 11: CEO Remarks – Increasing Margin Targets
CEO Remarks – Increasing Margin Targets • As we look ahead and consistent with the execution of our strategic growth objectives, we are raising our EBITDA margin targets for ESG and the Company overall • Introducing new Consolidated EBITDA Margin Target: 16 – 22% (increased from 14-20%) • Introducin
Slide 12: Raising 2025 Financial Outlook
Raising 2025 Financial Outlook • Raising Full-Year Adjusted EPS1 Outlook to a new range of $3.92 to $4.10 • Increased from the prior range of $3.63 to $3.90 • At the midpoint, new range would represent ~20% YoY growth, and the highest EPS level in our history • Raising Full-year Net Sales Outlook to
Slide 13: Federal Signal Q2 2025 Earnings Call Q&A
Federal Signal Q2 2025 Earnings Call Q&A July 30, 2025 Jennifer Sherman, President & Chief Executive Officer Ian Hudson, SVP, Chief Financial Officer Felix Boeschen, VP, Corporate Strategy & Investor Relations 13
Slide 14: Investor Information
Investor Information Stock Ticker - NYSE:FSS Company website: federalsignal.com/investors HEADQUARTERS 1333 Butterfield Road, Suite 500 Downers Grove, IL 60515 INVESTOR RELATIONS CONTACTS 630-954-2000 Felix Boeschen VP, Corporate Strategy and Investor Relations fboeschen@federalsignal.com 14
Slide 15: Appendix
Federal Signal Q2 2025 Earnings Call Appendix 15
Slide 16: Non-GAAP Measures
Non-GAAP Measures • Adjusted net income and earnings per share (“EPS”) - The Company believes that modifying its 2025 and 2024 net income and diluted EPS provides additional measures to assist it in comparing its performance on a consistent basis for purposes of business decision making by removing
Slide 17: Consolidated Adjusted EBITDA (Q2 2025 vs. Q2 2024)
Consolidated Adjusted EBITDA (Q2 2025 vs. Q2 2024) $ millions, except % Q2 2025 Q2 2024 Net income $ 71.4 $ 60.8 Add: Interest expense, net 3.5 3.2 Acquisition and integration-related expenses, net 0.5 0.8 Purchase accounting effects * 0.1 - Other expense, net 0.8 0.4 Income tax expense 22.0 16.7 De
Slide 18: Segment Adjusted EBITDA
Segment Adjusted EBITDA (Q2 2025 vs. Q2 2024) ESG $ millions, except % Q2 2025 Q2 2024 Operating Income $ 91.9 $ 72.9 Add: Acquisition and integration-related expenses, net 0.1 0.6 Purchase accounting effects * 0.1 - Depreciation and amortization 18.7 14.7 Adjusted EBITDA $ 110.8 $ 88.2 Net Sales $
Slide 19: Consolidated Adjusted EBITDA (2016-2025 LTM)
Consolidated Adjusted EBITDA (2016-2025 LTM) LTM ($ in millions) 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2 2025 Net income $ 39.4 $ 60.5 $ 93.7 $ 108.4 $ 96.1 $ 100.6 $ 120.4 $ 157.4 $ 216.3 $ 221.6 Add (less): Interest expense, net 1.9 7.3 9.3 7.9 5.7 4.5 10.3 19.7 12.5 12.6 Pension settlemen
Slide 20: fp FEDERAL SIGNAL
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